The way we manage our organizations is largely ineffective for the complex challenges we face, whether driven by the environment, demographics, economics, or politics.

Hierarchies assume that management knows best and that the higher up the hierarchy, the more competent and knowledgeable that person is. But hierarchies are merely centralized networks. They work well when information flows mostly in one direction: down. Hierarchies are good for command and control. They are handy to get things done in small groups. But hierarchies are rather useless to create, innovate, or change. Hierarchies are ineffective when things get complex.